India-US Trade Deal 2026:Products Getting Cheaper & Costlier

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India and the US signed a major trade deal on February 2. President Trump and PM Modi agreed to end their long trade war. Specifically, the US cut tariffs on Indian goods from 50% to 18%. India also promised to buy more American energy and tech products. Actually, the two nations want to reach $500 billion in total trade. This deal changes the price of many things you buy every day.

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At a Glance

• The Deal: US tariffs dropped to 18% from a peak of 50%.

• The Goal: India will buy $500 billion in US goods over time.

• The Catch: India must stop buying all crude oil from Russia.

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What Will Get Cheaper in India?

Many American goods will now flood the Indian market with zero duty. Therefore, you should see lower prices on high-end tech and gadgets. Laptops, chips, and medical tools will cost much less than before. Specifically, US farm products like almonds, walnuts, and apples will get cheaper. Even American dairy and pulses could see a big price drop soon. These changes help local shoppers and tech firms save money.

[Image showing a list of cheaper products: Laptops, Almonds, Walnuts, Medical Devices, and iPhone components]

Items That May Stay Costlier

Some goods will not see a price drop despite the new deal. Actually, metal duties on steel and aluminum stay high in the US. This protects American firms but keeps prices up for Indian exporters. In fact, auto parts may also stay expensive due to existing local taxes. Most luxury cars will still face high import duties in India. Finally, do not expect cheap gas at the pump just yet.

The Shift in Oil and Gas

India agreed to stop buying cheap Russian oil as part of this deal. Specifically, the state will now buy much more US crude and coal. This move helps the US but might raise energy costs in India. Actually, Russian oil was very cheap for Indian refiners during the war. Finally, switching to US oil could make electricity and fuel slightly more expensive. The state hopes to balance this with better trade terms.

Human Insight: The Reality Check

Don’t bank on every American product becoming cheap overnight. I think local farmers will protest if US milk and corn flood our markets. Actually, the $500 billion purchase goal is almost equal to India’s whole budget. Reality Check: India might struggle to hit these massive buying targets without hurting local makers. Finally, the 18% tariff is better than 50% but still higher than our neighbors. Vietnam and Bangladesh still have a slight price edge over us.

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